South African President Jacob Zuma has called for concrete measures to boost growth after S&P Global Ratings downgraded the local currency debt to sub-investment grade. Laura Frykberg reports.
South Africa's President Jacob Zuma.. Has called for concrete measures, to fix the country's economy. After S&P Global Ratings downgraded the local currency to "junk" territory. Citing deterioration in its economic outlook, and public finances. (SOUNDBITE) (English) ECONOMIST, SAM ROLLAND, SAYING: "We saw them highlight that political uncertainty as we go forward to wards the ANC political elective conference in December as one of the biggest reasons and structurally the debt burden on state owned enterprises. The widening of the current account deficit is certainly not sustainable." Zuma has directed the Finance Minister to cut expenditure to 25 billion rand. and boost revenue measures totaling 15 billion. He's also called for free higher education in a "fiscally-sustainable manner". A reflection perhaps of problems highlighted by S&P. Fitch has already rated the nation's debt as junk. While Moody's only considering it. That gave some relief to the Rand... Which rose around 2 percent on Monday, after tumbling by around the same amount on Friday. But South Africa could still lose its place in Citi's World Government Bond Index. The biggest of the global benchmarks And tracked by 2-3 trillion dollars of funds.